For updated information on 2023 Medicare IRMAA costs, visit our updated article. For 2022 information, continue reading below.
It’s not uncommon for Medicare premiums to increase every year. For some higher-earning Medicare Part B and Part D beneficiaries, a Medicare Income-Related Monthly Adjust Amounts (IRMAA) could change to how much they pay for their Part B and/or Part D premiums.
Since 2020, the surcharge that is tacked onto Part B and Part D premiums for higher income earners is indexed to the Bureau of Labor Statistics' Consumer Price Index for Urban Consumers (CPI-U). IRMAA brackets weren't previously indexed in this way.
The change reduced the number of beneficiaries who are subject to this extra charge for Medicare premiums, but many people still have to pay it.
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Most Medicare beneficiaries pay the standard Part B premium. Beneficiaries who have a Part D plan typically pay a monthly premium for their drug coverage.
But beneficiaries with higher reported incomes may pay an additional fee on top of their Part B and/or Part D premium. This is known as the Income-Related Monthly Adjusted Amount, or IRMAA.
The income that makes a beneficiary subject to the IRMAA is based on the modified adjusted gross income reported on their taxes from two years prior.
For example, beneficiaries who pay the IRMAA added to their Medicare premiums in 2022 are doing so based on the income they reported on their 2020 tax returns.
The chart below shows how IRMAA amounts for Medicare Part B and Part D premiums in 2022.
2020 Individual tax return | 2020 Joint tax return | 2020 Married and separate tax return | 2022 Part B premium | 2022 Part D premium |
---|---|---|---|---|
$91,000 or less |
$182,000 or less |
$91,000 or less |
$170.10 |
Your plan premium |
More than $91,000 and up to $114,000 |
More than $182,000 and up to $228,000 |
N/A |
$238.10 |
You plan premium + $12.40 |
More than $114,000 up to $142,000 |
More than $228,000 up to $284,000 |
N/A |
$340.20 |
Your plan premium + $32.10 |
More than $142,000 up to $170,000 |
More than $284,000 up to $340,000 |
N/A |
$442.30 |
Your plan premium + $51.70 |
More than $170,000 up to $500,000 |
More than $340,000 up to $750,000 |
More than $91,000 up to $409,000 |
$544.30 |
Your plan premium + $71.30 |
More than $500,000 |
More than $750,000 |
More than $409,000 |
$578.30 |
Your plan premium + $77.90 |
Indexing IRMAA’s income brackets according to the CPI-U increased the minimum income amount for each bracket.
What kind of effect did that have on beneficiaries and the Medicare program itself?
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Christian Worstell is a senior Medicare and health insurance writer with MedicareAdvantage.com. He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.
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